Taxation: US offshore crackdown brings planning worries
One of the most important and draconian pieces of tax legislation to come out of the US in generations continues to cause anxiety and uncertainty among the world’s biggest financial services groups.
A final draft of the Fatca billed as the first time a country will impose an overtly extraterritorial tax regime, was due out last month but is now not expected until next month and probably later.
Capco, the financial services consultancy, says the scope of Fatca is not yet fully defined and “keeps evolving”. “Until the regulations are out, we have nothing set in stone to work with,” the head of one of the world’s biggest fund managers says.
Fatca was drafted after the revelation in 2009 that UBS, the Swiss bank, had been helping thousands of US citizens avoid tax.
In 2010 the US government announced Fatca. The goal was to force non-US financial institutions – banks, fund managers, trusts, fiduciaries, custodians and depositaries – to provide it with data on US citizens with assets outside the US.